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Dec 2014 Statistics

Commentary: December quarter 2014

Personal insolvency activity in the December quarter 2014

Key points

Bankruptcies fell 13.7% percent in the December quarter 2014 compared to the December quarter 2013. There were falls in all states and territories except Western Australia.

Debt agreements increased 2.5% in the December quarter 2014 compared to the December quarter 2013. There were increases in all states and territories except New South Wales and the Australian Capital Territory.

Debt agreements in South Australia and the Northern Territory in the December quarter 2014 are the highest number on record in a quarter.

Personal insolvency agreements fell 10.0% in the December quarter 2014 compared to the December quarter 2013.

The rise in debt agreements did not offset the falls in bankruptcies and personal insolvency agreements. As a result, total personal insolvency activity fell 8.1% in the December quarter 2014 compared to the December quarter 2013.

Total personal insolvency activity

Total personal insolvency activity fell 8.1% in the December quarter 2014 (6 888) compared to the December quarter 2013 (7 493) and fell 7.7% compared to the September quarter 2014 (7 466).

The fall in total personal insolvency activity in the December quarter 2014 compared to the December quarter 2013 was the result of falls in total personal insolvency activity in:

New South Wales (-11.8%)

Victoria (-10.6%)

Queensland (-7.7%)

Tasmania (-14.3%)

South Australia (-4.0%)

Australian Capital Territory (-15.6%).

These falls were partly offset by an increase in Western Australia (14.8%). Total personal insolvency activity in the Northern Territory was stable.

The 8.1% fall in total personal insolvency activity in the December quarter 2014 compared to the December quarter 2013 follows a 0.2% fall in the September quarter 2014 compared to the September quarter 2013.

Total personal insolvency activity in Australia: % change compared to same quarter in previous year

Bankruptcies

The number of bankruptcies fell 13.7% in the December quarter 2014 (4 179) compared to the December quarter 2013 (4 844) and fell 4.8% compared to the September quarter 2014 (4 390).

The decrease in bankruptcies in the December quarter 2014 compared to the December quarter 2013 was the result of falls in the number of bankruptcies in:

New South Wales (-15.2%)

Queensland (-13.1%)

Victoria (-15.3%)

Tasmania (-28.1%)

South Australia (-11.7%)

Australian Capital Territory (-20.8%)

Northern Territory (-17.2%).

These falls were partly offset by an increase in Western Australia (1.2%).

The 13.7% fall in bankruptcies in the December quarter 2014 compared to the December quarter 2013 follows a fall of 11.6% in the September quarter 2014 compared to the September quarter 2013.

Bankruptcies in Australia: % change compared to same quarter in previous year

Debt agreements

The number of debt agreements increased 2.5% in the December quarter 2014 (2 655) compared to the December quarter 2013 (2 589) and fell 11.8% compared to the September quarter 2014 (3 010).

The increase in debt agreements in the December quarter 2014 compared to the December quarter 2013 was the result of increases in the number of debt agreements in:

Western Australia (39.2%)

Queensland (2.0%)

South Australia (10.9%)

Tasmania (9.9%)

Victoria (1.2%)

Northern Territory (19.2%).

These increases were partly offset by falls in:

New South Wales (-5.8%)

Australian Capital Territory (-10.6%).

The 2.5% rise in debt agreements in the December quarter 2014 compared to the December quarter 2013 follows a rise of 22.4% in the September quarter 2014 compared to the September quarter 2013.

Debt agreements in Australia: % change compared to same quarter in previous year

Personal insolvency agreements

Personal insolvency agreement activity shows higher volatility than bankruptcies and debt agreements due to the smaller numbers recorded each quarter. Personal insolvency agreements comprised 0.8% of total personal insolvency activity in the December quarter 2014.

The number of personal insolvency agreements fell 10.0% in the December quarter 2014 (54) compared to the December quarter 2013 (60) and fell 18.2% compared to the September quarter 2014 (66).

The fall in personal insolvency agreements in the December quarter 2014 compared to the December quarter 2013 was the result of falls in the number of personal insolvency agreements in:

Victoria (-41.7%)

Western Australia (-40.0%)

New South Wales (-8.3%)

Queensland (-6.3%).

These falls were partly offset by increases in:

South Australia (300.0%)

Tasmania (2 personal insolvency agreements, an increase from 0 in the December quarter 2013).

There was no change in the Australian Capital Territory and the Northern Territory.

The 10.0% fall in personal insolvency agreements in the December quarter 2014 compared to the December quarter 2013 follows a rise of 20.0% in personal insolvency agreements in the September quarter 2014 compared to the September quarter 2013.

Personal insolvency agreements in Australia: % change compared to same quarter in previous year